CME Group Rising on Record Revenue

CME operates a derivatives marketplace, offering futures and options products to help manage risk. The company’s exchanges and products cover all major asset classes based on interest rates, equity indexes, foreign currency exchange, energy, agricultural commodities, and metals. Recent partnerships have broadened the customer base and are aimed at bringing more retail investors into the fray.

In its fourth-quarter fiscal 2024 earnings report, CME showed a 10% revenue increase for the year, to $6.1 billion, with record volumes (nearly 27 million contracts in 2024) driving the gain. The company’s net income was $3.7 billion, which helped lift per-share earnings by 10%. For the fourth quarter alone, revenue was more than $1.5 billion, which was a 6% jump from the year prior. Additionally, CME returned roughly $3.8 billion to shareholders last year via dividends.

It’s no wonder CME shares are up 12% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Lifts CME Group

Institutional volumes reveal plenty. In the last year, CME has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in CME shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of financials names are under accumulation right now. But there’s a powerful fundamental story happening with CME Group.

CME Group Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, CME has had strong sales and earnings growth over the years:

• 3-year sales growth rate (+9.4%)
• 3-year earnings growth rate (+10.1%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +5.6%.

Now it makes sense why the stock has been powering to new heights. CME has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

CME Group has been a top-rated stock at MAPsignals for a while. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last 10 years, with more potentially on the horizon. The blue bars below show when CME was a top pick…gaining over time:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

CME Group Price Prediction

The CME rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in CME at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.